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Time Inc. (TIME): What Will Q1 Earnings Release Unveil?
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Time Inc. (TIME - Free Report) is slated to report first-quarter 2017 results on May 10, before the opening bell. In the last quarter, it reported a negative earnings surprise of 2.6%. Let’s see how things are shaping up prior to this announcement.
Zacks Model Shows Unlikely Earnings Beat
Our proven model does not conclusively show that Time Inc. is likely to beat estimates this quarter. This is because a stock needs to have both a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Time Inc. has an ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both are pegged at a loss of 9 cents. Moreover, the company carries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Factors Influencing this Quarter
Time Inc. has been focusing on the creation of digital properties and intends to increase digital advertising revenues by enhancing native branded content and video. Further, the company is concentrating on customization of data to aid advertisers target their audience more effectively. In this regard, the company acquired the assets of Viant. There has been a drastic change in audience preference due to which advertisers have shifted dollars to digital video. Management anticipates total revenue to be $3 billion in 2017.
We observe that total advertising revenue increased 5% during the final quarter of 2016. Print and other advertising revenue fell 10%, while digital advertising revenue soared 63%. The company is targeting adjacent revenue opportunities, which include Live Media, SI Play, eCommerce and various other products. Time Inc. through acquisitions of inVNT, a company that specializes in live media and Bizrate Insights, an online survey and subscription marketing company, is expanding its digital presence.
For first-quarter 2017, management now envisions total revenue to be down mid-single digits to high-single digits. Time Inc. envisions advertising revenue to be down mid-single digits year over year and subscription revenue to decline approximately low-teens with newsstand revenue expected to be down mid-teens.
Lions Gate Entertainment Corp. (LGF.A - Free Report) has an ESP of +6.06% and has a Zacks Rank #3.
Tribune Media Company has an ESP of +28.57% and carries a Zacks Rank #3.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
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Time Inc. (TIME): What Will Q1 Earnings Release Unveil?
Time Inc. (TIME - Free Report) is slated to report first-quarter 2017 results on May 10, before the opening bell. In the last quarter, it reported a negative earnings surprise of 2.6%. Let’s see how things are shaping up prior to this announcement.
Zacks Model Shows Unlikely Earnings Beat
Our proven model does not conclusively show that Time Inc. is likely to beat estimates this quarter. This is because a stock needs to have both a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Time Inc. has an ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both are pegged at a loss of 9 cents. Moreover, the company carries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Factors Influencing this Quarter
Time Inc. has been focusing on the creation of digital properties and intends to increase digital advertising revenues by enhancing native branded content and video. Further, the company is concentrating on customization of data to aid advertisers target their audience more effectively. In this regard, the company acquired the assets of Viant. There has been a drastic change in audience preference due to which advertisers have shifted dollars to digital video. Management anticipates total revenue to be $3 billion in 2017.
We observe that total advertising revenue increased 5% during the final quarter of 2016. Print and other advertising revenue fell 10%, while digital advertising revenue soared 63%. The company is targeting adjacent revenue opportunities, which include Live Media, SI Play, eCommerce and various other products. Time Inc. through acquisitions of inVNT, a company that specializes in live media and Bizrate Insights, an online survey and subscription marketing company, is expanding its digital presence.
For first-quarter 2017, management now envisions total revenue to be down mid-single digits to high-single digits. Time Inc. envisions advertising revenue to be down mid-single digits year over year and subscription revenue to decline approximately low-teens with newsstand revenue expected to be down mid-teens.
Time Inc. Price, Consensus and EPS Surprise
Time Inc. Price, Consensus and EPS Surprise | Time Inc. Quote
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Nexstar Media Group, Inc. (NXST - Free Report) currently has an ESP of +29.63% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lions Gate Entertainment Corp. (LGF.A - Free Report) has an ESP of +6.06% and has a Zacks Rank #3.
Tribune Media Company has an ESP of +28.57% and carries a Zacks Rank #3.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>